Audit standards

Audit standards

The standards of INTOSAI (International Organization of Supreme Audit Institutions) provide a set of advanced professional guidance designed to improve the effectiveness and efficiency of supreme audit institutions in the various member states. This guidance covers several areas, including:

• environmental auditing, which makes it possible to assess institutions’ compliance with environmental standards and help protect natural resources;
• information technology auditing, which enables audit bodies to examine information systems and verify their integrity and security;
• other areas, such as performance auditing, financial auditing and auditing the Sustainable Development Goals.

These standards therefore help strengthen transparency and accountability in the management of public finances.

The audit process under international standards

ISSAI 100 – Fundamental Principles of Public-Sector Auditing

ISSAI 100 defines the principles governing the audit process, including the essential stages that must be followed to ensure the objectivity and quality of the work. This process is designed as a recurring audit cycle, comprising:

• Audit planningThe auditor defines the subject matter, scope, objectives and criteria of the audit, the methods for gathering evidence, and the allocation of resources, tasks and deadlines. The auditor also assesses potential risks (discrepancies, fraud and errors) and determines strategies for addressing them. Clear roles and responsibilities for the auditor and the audited entity are essential, particularly regarding access to the necessary documents and information.
• Conducting the auditThe auditor carries out the planned procedures to obtain sufficient and appropriate evidence (financial or operational documents, observations, external confirmations and data analysis). Where necessary, the auditor adapts the plan in response to identified risks.
• The audit reportAfter analysing the evidence, the auditor prepares a report presenting the findings, stating whether the audit criteria have been met, identifying any discrepancies and making recommendations. The report must be objective, clear and evidence-based and, where applicable, specify any limitations encountered or reasons for a modified opinion.
• Follow-upThe audit does not end when the report is delivered: it continues with follow-up on the audited entity’s implementation of recommendations. The aim is to ensure that the recommendations are adopted and the deficiencies identified are corrected. In some cases, an additional report may be published.

International standards for financial, compliance and performance auditing (ISSAI 200, ISSAI 300 and ISSAI 400)

Each of these three standards addresses a specific type of audit and sets out detailed principles and professional guidance enabling the auditor to apply the general methodology defined by ISSAI 100 in a practical, rigorous and appropriate way.

ISSAI 200, ISSAI 300 and ISSAI 400 thus operate in conjunction with ISSAI 100 and extend it, each adding guidance specific to the conduct of the audit process.

ISSAI 200 – Fundamental Principles of Financial Auditing
Concerns the audit of financial statements prepared by public entities.
It specifies in particular:

• risk assessment,
• understanding the control environment and accounting framework,
• designing procedures to obtain sufficient and appropriate evidence.
  This standard establishes the framework for expressing the auditor’s opinion on the regularity and fair presentation of financial statements in accordance with accepted accounting frameworks and is largely aligned with the International Standards on Auditing (ISA) of IFAC.

ISSAI 300 – Fundamental Principles of Performance Auditing

• Aims to assess the effectiveness, efficiency and economy of public management.

It frames the objectives of performance auditing around questions such as:

• Do public programmes achieve their objectives?
  • Are resources managed effectively?
  • Can better results be obtained with fewer resources?
    This standard emphasises systematic analysis, the collection of multiple forms of evidence, methodological flexibility and innovation in evaluation tools. Performance auditing thus helps improve public management and decision-making beyond the mere detection of irregularities.

ISSAI 400 – Fundamental Principles of Compliance Auditing

• Concerns verification of public entities’ compliance with laws, regulations, contracts and agreements.
  It distinguishes between:
  • compliance auditing linked to financial auditing,
  • stand-alone compliance auditing,
  • and explains how to address legal irregularities and draw appropriate conclusions.

To consult all principles, standards and guidance published by INTOSAI, refer directly to its official documents available on its website.